Cabinet Office estimates a £1bn funding gap for social investment

Finance | Vibeka Mair | 25 Apr 2012

There is a £1bn gap in funding for social investment, says the Cabinet Office, which last week held a roundtable meeting to discuss barriers to social investment.

The meeting, which included representatives from the Charity Commission, Esmee Fairbairn Foundation, CIC Association and Social Investment Business, will feed into a report which will be delivered to Nick Hurd minister for civil society this Friday. A final report with recommendations on breaking down barriers to the growth of social ventures will be published for Hurd in June.

Cabinet Office notes from the meeting, seen by civilsociety.co.uk, say that private capital markets fail to provide sufficient capital to social ventures. Evidence brought forward by UK authorities concludes that the market fails to supply frontline social ventures with £0.9-1.7bn per year.

The meeting raised a number of issues on barriers to social investment including whether the tax regime discourages social investment when compared with commercial investment in SMEs and philanthropy; and the lack of regulated opportunities for ordinary people to make social investments.

Directory: Charity Commission | The Social Investment Business

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